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60-1101. Liens of contractors; priority. Any person furnishing labor, equipment, material, or supplies used or consumed for the improvement of real property, under a contract with the owner or with the trustee, agent or spouse of the owner, shall have a lien upon the property for the labor, equipment, material or supplies furnished at the site of the property subject to the lien, and for the cost of transporting the same. The lien shall be preferred to all other liens or encumbrances which are subsequent to the commencement of the furnishing of such labor, equipment, material or supplies by such claimant at the site of the property subject to the lien. When two or more such contracts are entered into applicable to the same improvement, the liens of all claimants shall be similarly preferred to the date of the earliest unsatisfied lien of any of them. If an earlier unsatisfied lien is paid in full or otherwise discharged, the commencement date for all claimants shall be the date of the next earliest unsatisfied lien.

History: L. 1963, ch. 303, 60-1101; L. 1965, ch. 355, § 5; L. 1972, ch. 223, § 1; L. 1977, ch. 203, § 1; L. 1978, ch. 230, § 1; L. 1982, ch. 248, § 1; L. 2005, ch. 95, § 1; July 1.

Source or prior law:

L. 1862, ch. 137, § 1; L. 1867, ch. 85, § 1; G.S. 1868, ch. 80, § 630; L. 1870, ch. 87, § 21; L. 1871, ch. 97, § 1; L. 1872, ch. 141, § 1; L. 1889, ch. 168, § 1; L. 1891, ch. 146, § 1; L. 1909, ch. 182, § 649; L. 1919, ch. 235, § 1; R.S. 1923, 60-1401.

Law Review and Bar Journal References:

Priority of mortgage and federal tax liens, Harold T. Beck, 30 J.B.A.K. 168 to 171 (1961).

Survey of debtor-creditor law, Robert B. Morton, 12 K.L.R. 211, 225 (1963).

Discussion of condominium ownership, Clarence Bender, 12 K.L.R. 445, 446 (1964).

Operation and effect of recording statutes, 17 W.L.J. 615, 633, 634, 635 (1978).

"Commercial Transactions Under the New Bankruptcy Act," Paul B. Rasor, 48 J.B.A.K. 199, 210 (1979).

"Kansas Mechanics' Lien Laws: Filing-Enforcing-Defending," Mert F. Buckley, 57 J.K.B.A. No. 5, 27, 30 (1988).

"Kansas Homestead Law," Roger L. Theis and Karl R. Swartz, 65 J.K.B.A. No. 3, 20, 36 (1996).

"Debtor-Creditor: When Is an Improvement Not an Improvement? Interpretation of the Kansas Mechanic's Lien Statute [Haz-Mat Response, Inc. v. Certified Waste Services Ltd., 910 P.2d 839 (Kan. 1996)]," Juliann Johnson, 36 W.L.J. 499 (1997).

"Title and Related Considerations in Conveying Kansas Water Rights," John C. Peck, 66 J.K.B.A. No. 9, 38 (1997).

"Testing the Waters of Kansas Mechanic's Liens," Eric G. Kraft, 74 J.K.B.A. No. 5, 16 (2005).

CASE ANNOTATIONS

Prior law cases, see G.S. 1949, 60-1401 and the 1961 Supp. thereto.

1. Mentioned; general contractor's statutory bond covered claim for materials furnished to subcontractor. Leidigh & Havens Lumber Co. v. Bollinger, 193 K. 600, 604, 396 P.2d 320.

2. Materials must be used in construction to form basis for lien. Seyb-Tucker Lumber & Implement Co. v. Hartley, 197 K. 58, 61, 63, 415 P.2d 217.

3. Cited in upholding lien filed pursuant to G.S. 1949, 60-1403 (K.S.A. 60-1103). Toler v. Satterthwaite, 200 K. 103, 105, 106, 108, 109, 434 P.2d 814.

4. Once lien attached, statute to be liberally construed; subcontractor may obtain lien only by complying with 60-1102 and 60-1103. D. J. Fair Lumber Co. v. Karlin, 199 K. 366, 430 P.2d 222.

5. Test for determining time when work completed stated; holder of legal title an "owner." Benner-Williams, Inc. v. Romine, 200 K. 483, 485, 487, 437 P.2d 312.

6. Cited; promise to pay additional compensation to foremen not for "labor" and not lienable hereunder. Goodyear Tire and Rubber Company v. Jones, 317 F.Supp. 1285, 1286, 1287, 1288, 1289, 1290 (1968), 433 F.2d 629 (1970).

7. Applied in conjunction with 60-1103(a) in allowing costs of transportation to subcontractors. Geis Irrigation Co. v. Satanta Fee Yards, Inc., 214 K. 373, 378, 521 P.2d 272.

8. Lien statutes construed and applied; validity of liens expired before motion to implement judgment filed. Boyce v. Knudson, 219 K. 357, 362, 548 P.2d 712.

9. Judgment for contractor against owners of real property upheld; general contractor defined. Stewart v. Cunningham, 219 K. 374, 377, 548 P.2d 740.

10. Applied in determining lien not timely filed under 60-1103. Holiday Development Co. v. Tobin Construction Co., 219 K. 701, 706, 549 P.2d 1376.

11. Statute did not modify prior rule that contractor who improves tract of land shall have lien on entire tract, not just part where improvement made. Confinement Specialists, Inc. v. Schlatter, 6 K.A.2d 1, 3, 4, 5, 626 P.2d 223.

12. A supplier of pipe to a contractor or subcontractor for installation on a gas pipeline easement is entitled to a mechanic's lien under 55-207 and 55-208. Interlake, Inc. v. Kansas Power & Light Co., 7 K.A.2d 16, 18, 19, 23, 637 P.2d 464 (1982).

13. A supplier to a materialman is afforded no protection under the oil and gas lien statutes 55-207 to 55-210, inclusive. Interlake, Inc. v. Kansas Power & Light, 231 K. 251, 254, 644 P.2d 385 (1982).

14. Lien statement should name as owner the owner who contracted for materials. Construction Materials, Inc. v. Becker, 8 K.A.2d 394, 395, 396, 398, 399, 659 P.2d 243 (1983).

15. Mechanic's lien was a statutory lien rather than a "security interest." In Re Seel, 22 B.R. 692, 693, 694, 695 (1982).

16. Strictness of verification requirement stated; cloud on property and priority over subsequent liens convey significance of lien ramifications. Lewis v. Wanamaker Baptist Church, 10 K.A.2d 99, 100, 696 P.2d 397 (1984).

17. Similarities with oil and gas mechanics' liens (55-207, 55-210) recognized; decisions on mechanics' liens controlling insofar as applicable. DaMac Drilling, Inc. v. Shoemake, 11 K.A.2d 38, 39, 713 P.2d 480 (1986).

18. Where record owner makes improvements with materials furnished under contract and meanwhile conveys to third parties, supplier may perfect lien hereunder or 60-1103. Star Lumber & Supply Co. v. Capital Constr. Co., 238 K. 743, 750, 715 P.2d 11 (1986).

19. Injunction against encumbering construction funds unavailable where defendant waives sovereign immunity and mechanic's lien available. Ledford v. Housing Authority of Sac and Fox Nike, 609 F.Supp. 211 (1985).

20. 1977 amendment did not limit priority of oil and gas liens. D Oil, Inc. v. Brungardt, 13 K.A.2d 142, 764 P.2d 851 (1988).

21. Statute imposes no condition to lien, nor is prepayment of costs of project required to obtain lien. Eisenhut v. Steadman, 13 K.A.2d 220, 222, 767 P.2d 293 (1989).

22. 60-1105(a) as statute of duration not limitation requiring action within one year to perfect lien determined. In re Birdview Satellite Communications, Inc., 90 B.R. 465, 467 (1988).

23. Mechanics' liens for architectural and engineering services invalid where no construction commenced on planned development. Mark Twain Kansas City Bank v. Kroh Bros. Dev. Co., 14 K.A.2d 714, 719, 798 P.2d 511 (1990).

24. Mechanic's lien attaching after execution but before recording of purchase money mortgage has priority where lienholder has no actual knowledge of mortgage. Shade v. Wheatcraft Industries, Inc., 248 K. 531, 535, 538, 809 P.2d 531 (1991).

25. Requirements for lien to attach must be strictly met; thereafter provisions are liberally construed; verifications examined. J. Walters Constr. Co. v. Greystone South Partnership, 15 K.A.2d 689, 691, 817 P.2d 201 (1991).

26. No agency relationship established, so mechanic's lien did not apply to landlord. Kansas City Heartland Constr. Co. v. Maggie Jones Southport Cafe, Inc., 250 K. 32, 34, 35, 37, 824 P.2d 926 (1992).

27. Mechanics' liens for services and materials used in removal of hazardous waste invalid where no improvement of real property. Haz-Mat Response, Inc. v. Certified Waste Services, Ltd., 21 K.A.2d 56, 59, 65, 896 P.2d 393 (1995).

28. Lien timely where work performed was necessary to comply with terms of contract. Security Benefit Life Ins. Corp. v. Fleming Companies, Inc., 21 K.A.2d 833, 841, 908 P.2d 1315 (1995).

29. Removal of hazardous waste not an improvement of real property for mechanic's lien purposes; improvement of real property construed. Haz-Mat Response, Inc. v. Certified Waste Services Ltd., 259 K. 166, 168, 170, 175, 910 P.2d 839 (1996).

30. Date contractor commenced work on project was date of earliest unsatisfied lien. Davis Electric, Inc. v. Showalter, 31 K.A.2d 318, 64 P.3d 456 (2003).

31. Contractor lien commences with furnishing of labor, equipment, material or supplies at the site of property subject to lien. Mutual Savings Ass'n. v. Res/Com Properties, LLC, 32 K.A.2d 48, 79 P.3d 184 (2003).

32. Mentioned; claim of homestead exemption upheld in certain trust property. Redmond v. Kester, 284 K. 209, 217, 218, 159 P.3d 1004 (2007).

33. Cited; mechanic's lien of material supplier fails; failed to state general contractor's name. Alliance Steel, Inc. v. Piland, 39 K.A.2d 972, 979, 187 P.3d 111 (2008).

34. Bank mortgagee was held to have priority over the mechanic's lien claimants under the facts of the case. In re Corbin Park, L.P., 441 B.R. 370 (2010).

35. Work performed by contractors under separately executed contracts with subsequent purchaser of property created separate lien rights that could not be tacked on to contractor's contracts with prior owner, for purposes of claiming priority for liens over intervening mortgage. In re Corbin Park, L.P., 441 B.R. 370 (Bkrtcy. D. Kan. 2010).

36. Mechanics' lien relating to work performed for new owner could not "relate back" to work performed for prior owner under the facts of the case. In re Corbin Park, L.P., 470 B.R. 573 (10 th Cir. BAP 2012).


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